Prosecutors: "Former KT Chairman Hwang Chang-gyu's 'Split Donations' Non-Indictment Justified"… Appeal Dismissed

Former KT Chairman Hwang Chang-gyu. Photo by Jinhyung Kang aymsdream@

[Asia Economy Reporter Choi Seok-jin, Legal Affairs Specialist] The Seoul High Prosecutors' Office has ruled that the Seoul Central District Prosecutors' Office's decision not to indict former KT Chairman Hwang Chang-gyu (69) in connection with the alleged 'split donations' to members of the National Assembly is justified.

According to the legal community on the 18th, the Seoul High Prosecutors' Office dismissed the appeal filed by the KT Labor Rights Center against former Chairman Hwang on the 11th. An appeal is a procedure in which the complainant or accuser, dissatisfied with the prosecution's decision not to indict, requests a higher prosecution office to review the appropriateness of the non-indictment decision.

Earlier, the Economic Crime Criminal Division of the Seoul Central District Prosecutors' Office (Chief Prosecutor Yoo Kyung-pil), which investigated the case, summary indicted 10 KT executives, including KT CEO Koo Hyun-mo (58), who participated by lending their names, on charges of violating the Political Funds Act and embezzlement in the course of duty last November, and non-detained indicted four others, including former public affairs department head Maeng Mo, on the same charges. The prosecution also brought the KT corporation to trial under the joint liability provision.

Koo, who was then a vice president-level executive, is accused of receiving off-the-books funds from the public affairs executive and donating a total of 14 million won in political funds to the support committees of 13 members of the National Assembly.

The four executives who were non-detained indicted are accused of illegally donating a total of 437.9 million won in political funds to 99 members of the National Assembly through 360 transactions by splitting amounts of 1 million to 3 million won under the names of employees and acquaintances. This was done by using off-the-books funds generated through so-called 'gift certificate discounts,' where from May 2014 to October 2017, the company paid for gift certificates with company budget and then received cash back at a 3.5% to 4% discount instead of the gift certificates.

They were investigated to have chosen the method of splitting amounts under individual names to evade the Political Funds Act, which prohibits political donations using corporate or organizational funds.

However, at the time, the prosecution decided not to indict former Chairman Hwang, who was also accused along with them, stating that it was difficult to acknowledge his involvement in the conspiracy.

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