Prosecutors arrest KTF chief in rebate probe

(ATTN: UPDATES throughout with arrest of KTF head, bribery allegations)
SEOUL, Sept. 19 (Yonhap) -- Prosecutors arrested the head of KTF Co. and raided the mobile carrier's headquarters on Friday as part of an investigation into
allegations that the company took kickbacks from suppliers in return for agreeing
to buy their products.
KTF President Cho Young-ju, who was recently banned from travel, was detained at
the Seoul Central District Prosecutors' Office just hours after investigators
confiscated contract documents and computer hard disks from the company
headquarters in southern Seoul.
Cho and several KTF executives are accused of routinely taking rebates from the
suppliers over the past four years.
Investigators said they have found evidence that Cho had opened bank accounts
under borrowed names to receive the rebates. The money may have also streamed to
politicians as bribes, they said.
Earlier this month, investigators raided offices of several suppliers of KTF
mobile phone parts and routers to seize their accounting books and contract
documents.
Investigators believe the suppliers created slush funds for South Korea's
second-largest mobile carrier by inflating the sales prices of their goods.