Koo Hyeon-mo, former CEO of KT (030200.KS), was found not guilty in a first-ruling trial on charges of improperly interfering in the management of a subcontractor.
The 23rd Criminal Division of the Seoul Central District Court, presided over by Chief Judge Oh Se-yong, on the 25th cleared Koo, who had been indicted without detention on charges of violating the Fair Transactions in Subcontracting Act.
Koo was tried alongside Shin Hyeon-ok, former head of KT's management division and a vice president, on charges that in 2020 he directed KS Mate, a subcontractor of KT's affiliate KT Telecop, to appoint a former KT executive, thereby interfering in its management, in violation of the Fair Transactions in Subcontracting Act.
The court ruled that "the evidence submitted by the prosecution alone is insufficient to establish that Koo and Shin conspired to use their positions or influence to interfere in personnel decisions."
After the ruling, Koo said the previous government "indicted me without evidence to block my reappointment as KT CEO," describing it as "an abuse of authority."
Shin was also acquitted on the charge of violating the Fair Transactions in Subcontracting Act. Shin had additionally faced charges, including violation of the Fair Trade Act, that in March 2021 he had KT Telecop sharply reduce the volume of business given to another subcontractor in order to steer more work to KDFS, but he was acquitted on that count. KT Telecop, indicted on the same charge, was also cleared.
However, Shin was found guilty of coercing a KT Telecop executive at the time by threatening to "dismiss" the person and forcing work to be concentrated with a specific company, and was fined 5 million won ($3,600). The court said Shin "used his position to influence personnel decisions over KT Telecop executives to force the victims to adjust volumes for partner firms in a way they did not want."
Three KT executives and employees, including Hong, a former associate vice president in KT's management support office, were found guilty of taking bribes worth tens of millions of won from Hwang, the head of subcontractor KDFS, in return for solicitations to increase work volumes. They received sentences ranging from one year in prison with two years of probation to two years in prison with three years of probation.
