Koo Hyun-mo, the former CEO of KT, was acquitted in a first trial on charges of improperly intervening in the appointment of a subcontractor's CEO.
The Seoul Central District Court's Criminal Division 23, led by Judge Oh Se-yong, ruled on the 25th that Koo was not guilty of violating the Subcontracting Act.
Koo was accused of directing the appointment of a former executive from a KT affiliate as the CEO of KS Mate, a subcontractor of KT's subsidiary KT Telecop, thereby interfering in its management.
The court expressed doubts about whether Koo used his position at KT to influence the CEO appointment but concluded that the evidence presented by the prosecution was insufficient to establish management interference.
Shin Hyun-ok, the former head of KT's management support division, who was also indicted, was found not guilty of violating the Subcontracting Act, the Fair Trade Act, and attempted coercion. KT Telecop was also acquitted.
However, the court found Shin guilty of coercion for pressuring an executive at KT Telecop to adjust the volume of work for a partner company, sentencing him to a fine of 5 million won. The court noted that Shin used his position to compel the victim to perform an act that was not required of them.
Hong Mo, a former KT managing director, and Lee Mo, a former KT director, received one year in prison, suspended for two years, for misusing corporate cards for personal expenses. Kim Mo, a former executive at KT Telecop, was sentenced to two years in prison, suspended for three years.
Hwang Wook-jeong, the CEO of KDFS, who was indicted for providing corporate cards along with illicit requests, was sentenced to ten months in prison, suspended for two years. The court pointed out that Hwang had provided corporate cards to KT employees over an extended period and received information about the volume of work from partner companies in return for these improper benefits.
* This article has been translated by AI.
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