KT CEO Koo Hyun-mo Denies Charges, Claims "Unaware of Illegality" in First Trial Over 'Split Donations'

[Image source=Yonhap News]

[Asia Economy Reporter Kim Daehyun] KT CEO Koo Hyun-mo (58), who was indicted on charges of 'splitting donations' to members of the National Assembly, appeared at his first trial and denied the charges, saying, "I did not think it was illegal."

At 10:20 a.m. on the 6th, Judge Heo Jeong-in of the Seoul Central District Court Criminal Division 17 presided over the first trial of Koo and 10 KT executives and employees indicted on charges of embezzlement in the course of business.

At the court, Koo said, "This happened six years ago, and at that time, there was a request from the CR division to lend a name related to political funds," adding, "If I had thought it was a problem then, I would not have done it." He also added, "It is really difficult to explain this matter to foreign investors. Our management has become unscrupulous people."

KT is accused of creating slush funds worth about 1.15 billion won by purchasing and reselling gift certificates in a so-called 'gift certificate laundering' method from May 2014 to October 2017, and illegally donating 437.9 million won to 99 ruling and opposition lawmakers of the 19th and 20th National Assembly. Employees of the related department were indicted without detention.

It was investigated that they borrowed names of executives, employees' families, acquaintances, etc., to support funds exceeding the donation limit of 5 million won per person per year to lawmakers' support committees under the Political Funds Act.

Koo is also accused of participating in the crime by lending his name to an executive in charge of government relations during this process. The defense attorneys mostly acknowledged the facts but argued that they only lent their names for the company and had no intention of illegal gain.

The court said, "We will examine whether the defendants had the intention of illegal gain," and set the next trial date for the 11th of next month.

Previously, the prosecution had summarily indicted Koo on charges of violating the Political Funds Act and embezzlement in the course of business, but Koo appealed the prosecution's disposition and requested a formal trial. A summary indictment is a procedure in which the prosecution requests a fine or penalty through written examination instead of a formal trial. If the party or the court raises objections, the case is sent to a formal trial.

The court initially issued a summary order imposing a fine of 10 million won for violating the Political Funds Act and 5 million won for embezzlement in the course of business against Koo, but this order lost its effect due to the request for a formal trial. Koo's case for violating the Political Funds Act is scheduled for its first trial on the 4th of next month under Judge Kim Sang-il of the Criminal Division 1 of the same court. The court is considering merging the two trials for joint hearing.

Meanwhile, the prosecution separately indicted Maeng Mo, an executive in charge of government relations, and at the sentencing hearing held on the 23rd of last month at the Seoul Central District Court Criminal Division 22 (Presiding Judge Lee Jun-cheol), requested a sentence of 1 year and 2 months imprisonment for violating the Political Funds Act and 10 months imprisonment for embezzlement in the course of business. Under the joint penalty provision, the prosecution also requested a fine of 10 million won for KT Corporation, which was tried together with Maeng.

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