Prosecutors Conduct Search at KT Headquarters... Additional Evidence Secured on Bid Rigging Allegations

[Image source=Yonhap News]

[Asia Economy Reporter Kim Hyung-min] The prosecution investigating the bid-rigging case involving KT's dedicated lines for the public sector has conducted a search and seizure at KT headquarters to secure additional evidence.

According to the legal community on the 18th, the Fair Trade Investigation Division of the Seoul Central District Prosecutors' Office (Chief Prosecutor Kim Min-hyung) has sent prosecutors and investigators over two days starting from the previous day to KT's Enterprise Business Division office in Gwanghwamun, Seoul, to collect materials related to bids for dedicated lines for public institutions.

KT and the other two telecommunications companies are suspected of colluding by taking turns favoring specific companies in 12 dedicated line project bids issued by public institutions from April 2015 to June 2017.

A dedicated line is a communication line that connects specific points desired by the subscriber under a dedicated contract and can be used exclusively by that subscriber.

The Fair Trade Commission, which identified KT as the dominant market player leading the collusion, reported the case to the prosecution.

The three telecommunications companies are under investigation for deliberately not participating in some dedicated line project bids or withdrawing at the last minute to act as a cover, thereby helping specific companies win the bids.

It has been found that some winning bidders signed line lease contracts with the cover companies that helped them win and paid 13.2 billion KRW in usage fees despite not actually using the lines.

This content was produced with the assistance of AI translation services.