'Split Donations to Lawmakers' Former KT Executives Receive Suspended Prison Sentences in First Trial

Seoul Central District Court. / Photo by Moon Honam munonam@

[Asia Economy Reporter Kim Daehyun] A former KT executive who was prosecuted for creating slush funds through so-called 'gift certificate laundering' and then making split donations to members of the National Assembly was sentenced to a suspended prison term in the first trial.

On the afternoon of the 16th, the 22nd Criminal Division of the Seoul Central District Court (Presiding Judge Lee Jooncheol) sentenced Maeng Mo, former head of KT's government relations department, to 10 months in prison with a 2-year suspension for violating the Political Funds Act, and 8 months in prison with a 2-year suspension for embezzlement charges.

Maeng and other indicted employees also received suspended prison sentences. Under the joint penalty provision, KT was fined 10 million won.

Previously, Maeng and others were accused of illegally donating 437.9 million won out of 1.15 billion won of slush funds raised between May 2014 and October 2017 to 99 members of the 19th and 20th National Assembly from both ruling and opposition parties in 360 instances. It was investigated that they used the names of executives, employees’ family members, and acquaintances to exceed the annual donation limit of 5 million won per person to National Assembly members’ support committees under the Political Funds Act.

According to the Political Funds Act, the donation limit for an individual to a National Assembly member’s support committee is 5 million won per year. Additionally, corporations or organizations are prohibited from donating political funds, and providing political funds with money related to corporations or organizations is also forbidden.

In his final statement, Maeng said, "I considered KT my everything and committed the crime out of excessive loyalty," adding, "I have been unable to do anything for four years due to investigations by authorities and depression, living day by day."

Meanwhile, KT CEO Koo Hyunmo, who received a summary order for 15 million won related to the charges, appealed and requested a formal trial, which is currently underway at the same Seoul Central District Court. The prosecution decided not to indict former KT Chairman Hwang Changgyu, citing difficulty in proving conspiracy.

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