KT's "Ilgam Molaeju-gi" Hwang Wook-jung, KDFS CEO, Arrested... "Risk of Evidence Tampering and Flight"

Hwang Wook-jung (69), CEO of KDFS, a key company suspected of 'KT preferential treatment of orders,' was arrested on the 14th.

Hwang Wook-jung, CEO of KDFS [Image source=Yonhap News]

With this, the prosecution secured the custody of a related person for the first time two months after intensifying the investigation into this suspicion.

Yoon Jae-nam, the chief judge in charge of warrants at the Seoul Central District Court, conducted a pre-arrest detention hearing for CEO Hwang the day before and issued an arrest warrant requested by the prosecution on the same day, citing "concerns of evidence destruction and flight risk."

The arrest warrants for Hong (51), assistant general manager of KT headquarters' Management Support Office, Lee (52), manager, and Kim (58), former executive director of KDFS and former executive director of KT Telecop, who were also subject to arrest warrant requests, were all dismissed.

Judge Yoon ruled that regarding Hong and Lee, "Considering their admission of wrongdoing and remorse in the embezzlement charges, the need to guarantee the right to defense in the violation of the Fair Trade Act, and their stable residence, there is insufficient necessity and justification for detention at this stage." He also took into account that Lee fully reimbursed the corporate card expenses to KDFS. Regarding Kim, he stated, "Since Kim denies the establishment of embezzlement and Fair Trade Act violations, and considering the suspect's claims, resignation timing, and benefit receipt timing, it is necessary to guarantee the right to defense."

CEO Hwang is suspected of requesting Hong, Lee, Kim, and others in 2021 to increase the volume of facility management service orders to KDFS and providing them with financial benefits.

Hong and others reportedly drastically reduced the service volume of another subcontractor, KFnS, ignoring previous contract terms, and in return, from 2020 to this year, received benefits worth up to 70 million KRW per person from KDFS, including corporate cards, shared office use, and employment opportunities for family members. During this process, the prosecution found that CEO Hwang gave preferential hiring to Hong's son at KDFS and falsely hired Kim's wife.

Hwang is also suspected of embezzling about 5 billion KRW of KDFS funds from 2017 to this year by listing his children as nominal employees or paying false consulting fees.

With CEO Hwang in custody, the prosecution is expected to expand the investigation. The prosecution is investigating KT executives for preferentially allocating orders to KDFS and using the increased profits as slush funds.

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