Prosecutors Summon Subcontractor Executives in 'KT Telecop Favoritism' Case

Prosecutors investigating KT Group's 'suspicion of preferential treatment in subcontracting' are expanding their investigation by summoning executives and employees of subcontractors identified as beneficiaries of special favors one after another.

Prosecution
[Image source=Yonhap News]

According to the legal community on the 24th, the Fair Trade Investigation Division of the Seoul Central District Prosecutors' Office (Chief Prosecutor Lee Jeong-seop) summoned Mr. A, an executive director of KDFS, a subcontractor for facility management of KT Telecop, and the two children of CEO Hwang Wook-jung, who works as an employee at the company, as witnesses for questioning this morning.

Mr. A previously worked at KT headquarters handling facility management business-related tasks but moved to KT Telecop, a facility management affiliate, after former CEO Koo Hyun-mo took office in 2020. He is reported to have been re-employed as an executive director at KDFS, a subcontractor of KT Telecop. Mr. A is also known to have a close relationship with former CEO Koo and CEO Hwang. Prosecutors suspect that their connection played a role in KT Telecop funneling work orders to KDFS.

The children of CEO Hwang, who work at KDFS, were also summoned as witnesses. After former CEO Koo took office in 2020, KT changed the work order issuing company from KT Estate to KT Telecop. KT Telecop entrusted the contracted work to four subcontractors?KDFS, KSmate, KFnS, and KSNC?and adjusted the volume through quality evaluations. Prosecutors believe that during this process, Telecop ignored the evaluation criteria and funneled work orders to KDFS.

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