Prosecution Arrests and Indicts Hwang Wook-jung, KDFS CEO, for 'KT Preferential Contracting' Case

Hwang Wook-jung, CEO of KDFS and the key suspect in the 'KT preferential treatment of orders' case, was indicted while in custody on the 1st.

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

The Fair Trade Investigation Division of the Seoul Central District Prosecutors' Office (Chief Prosecutor Lee Jeong-seop) indicted CEO Hwang on the 1st on charges of violating the Act on the Aggravated Punishment of Specific Economic Crimes (embezzlement and breach of trust).

According to the prosecution, CEO Hwang is accused of embezzling approximately 4.8 billion KRW of KDFS funds from 2017 to 2023 by nominally registering his two children as employees or paying false consulting fees.

CEO Hwang is also charged with soliciting and providing financial benefits by requesting an increase in facility management service volumes to KDFS from Hong, a deputy general manager in the Management Support Office at KT headquarters in 2021, Lee, a department head, and Kim, a former executive director of KT Telecop and current executive director of KDFS (charge of mediation of breach of trust). A prosecution official stated, "Investigations into CEO Hwang's mediation of breach of trust charges and those accused of receiving breach of trust will continue."

The prosecution, which indicted CEO Hwang, is expected to accelerate the investigation into KT Group's 'preferential treatment of orders' allegations. KDFS is a subcontractor responsible for facility management services for KT Telecop. The core suspicion is that former KT CEO Koo Hyun-mo and other executives funneled building management orders to KDFS and created slush funds worth tens of billions of KRW through this.

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