'Exclusive Line Business Collusion' Former KT Executive Acquitted in Second Trial

A former KT executive, who was sentenced to prison in the first trial for colluding with other companies in a public sector dedicated line project bid, was acquitted in the appellate trial. The Seoul Central District Court Criminal Appeal Division 4-1 (Presiding Judges Yang Ji-jeong, Lee Tae-woo, Lee Hoon-jae) overturned the first trial’s sentence of one year imprisonment against former KT head Han Mo, who was charged with violating the Fair Trade Act, and acquitted him. KT Corporation, also indicted, was fined 150 million won, which is 50 million won less than the 200 million won fine in the first trial.

The court stated, "The content that other employees reported collusion acts to the defendant is ambiguous, and their testimonies were suspiciously reversed. Considering this, it is highly likely that responsibility was shifted to the defendant to avoid criminal punishment," and added, "It is difficult to conclude that the defendant was aware of the collusion and tacitly participated in the crime." Furthermore, "Even if the defendant received reports related to the case, there is insufficient evidence to recognize that he conspired in the crime."

Regarding KT Corporation, the court said, "It is unfavorable that similar offenses had already been punished previously and the offenses recurred," and "Although efforts such as conducting ethics and compliance training for executives and employees were recognized, considering that violations were repeated despite this, the effectiveness is questionable."

Previously, KT and two other telecommunications companies were prosecuted for colluding by taking turns to favor specific companies in bids for 12 public sector dedicated line projects (communication lines granting exclusive usage rights connecting specific points requested by subscribers) ordered by public institutions from April 2015 to June 2017. The Korea Fair Trade Commission regarded KT as leading the collusion and reported it to the prosecution, which brought KT officials including Mr. Han to trial.

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