Prosecution Summons Former Spark CEO Park Seong-bin for 'KT Boeun Investment' Allegations

by Choi Sukjin

Published 23 Jan.2024 12:29(KST)

Updated 06 Feb.2024 16:16(KST)

The prosecution investigating allegations that KT Group purchased shares of Hyundai Motor affiliates at inflated prices summoned Park Seong-bin, former CEO of Spark & Associates (now Open Cloud Lab), for questioning on the 23rd.

The Fair Trade Investigation Division of the Seoul Central District Prosecutors' Office (Chief Prosecutor Yong Seong-jin) called Park in the morning as a suspect and is currently interrogating him.

Seoul Central District Prosecutors' Office, Seocho-dong, Seoul.

KT Cloud, a subsidiary of KT, is suspected of having purchased shares of Spark & Associates, a company founded by Park, at prices higher than their actual value in 2022.

At that time, KT Cloud acquired 100% of Spark & Associates' shares for 20.68 billion KRW, incorporated it as a subsidiary, and then changed the company name to Open Cloud Lab.

This has raised suspicions that KT's purchase of Spark & Associates was a reciprocal investment in response to Hyundai Motor acquiring shares of 'Airplug,' a company established by the twin brother of former KT CEO Koo Hyun-mo, in two rounds in 2019 and 2021.

The prosecution is reportedly pressing Park on the circumstances under which KT Cloud, a KT subsidiary, acquired Spark & Associates' shares at prices exceeding their actual value.

Earlier, the prosecution conducted searches in August last year at the residence of former KT President Yoon Kyung-rim, KT headquarters, KT Cloud, Open Cloud Lab, and residences of related parties. In November last year, they also seized related materials from four locations, including the residences of Seo Jeong-sik, then CEO of Hyundai AutoEver, and Spark & Associates affiliates.

In December last year, searches were conducted at Hyundai AutoEver headquarters, the cloud operations center, and the Samsung-dong building, and former CEO Seo was summoned for questioning. On the 9th, Yoon Dong-sik, CEO of KT Cloud, was summoned for investigation.