KT Persons Squeezed Venture Firms

The prosecution disclosed executives and personnel of Korea Telecom (KT) and KT affiliated KT Solutions Corporation (KTS), who received money from venture companies soliciting business aids like supply and acceptance of orders.

Special Division III of Seoul District Prosecution (chief prosecutor Seo Woo-Jeong) arrested 5 persons including Park Geun-Soo (41) division chief of KT Corporation Sales Team for the suspicion of receiving great rebate along with solicit from computer equipment manufacturing company H, and Byon Sang-Bum (40) sales executive of the company H, who gave him the money.

And the prosecution booked Mr. Choi (32) former sales division chief of the company H, and searched for Mr. Lee (43) division chief of KT, who received 90 million won from KTS personnel.

According to the prosecution, Mr. Park requested Mr. Byon for money saying “I`ll let the company H supply Internet equipments to KT managing businesses, ” and received 300 million won. The prosecution announced that Park Jeong-Eun (50, arrested) division chief of KTS received 150 million won from the company H, and gave Jeong Won-Jae (44, arrested) managing executive of KTS and Mr. Lee 40 million won each soliciting “let us supply 600 switching hubs (data distributing device) for telephone offices by a private contract. ”

The prosecution found out that the company H supplied at the price increased by 250,000 won, and provided the margin to them. An official of the prosecution said, ¡°we are examining the expansion of the investigation as KT used influence on the selection of KTS for the supplier, and there were traditionally delivery of rebate in the process of selection of supplier.

myzodan@donga.com