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Telecom CEO Nam Grilled on Bribery Allegations

Posted October. 31, 2008 09:13,   


Seoul prosecutors yesterday summoned for questioning KT CEO Nam Joong-soo as a suspect into alleged irregularities involving the state-run telecom company and its subcontractors.

Sources said Nam is found to have taken some 300 million won (236,000 U.S. dollars) in return for favors in selecting personnel or subcontractors from senior executives of KT affiliates, such as former KTF CEO Cho Young-chu and former KTF Networks CEO Roh Tae-beom, both of whom are in police custody.

Prosecutors said Nam personally asked the two ex-CEOs to remit money to the account of his wife’s friend.

When Nam was KTF CEO three years ago, Roh asked him not only to help him become one of the CEOs of a KTF affiliate, but also to help his brother’s company get selected as a KTF Networks supplier. In return, Roh wired 2.3 million won (1,813 dollars) a month from March 2005 to August this year to Nam’s borrowed-name account.

Cho asked Jeon Yong-gon, the real owner of transmission subcontractor BCNe Global, to hand over 80 million won (63,000 dollars) to Nam from 2006.

Prosecutors also reportedly secured evidence that Nam received hundreds of thousands of dollars from other employees and subcontractors.

After serving as KTF CEO from Jan. 2003 through July 2005, Nam has been KT CEO since Aug. 2005. Prosecutors will soon seek an arrest warrant against him on charges of misappropriation.