ID :
20686
Tue, 09/23/2008 - 11:50
Auther :
Shortlink :
http://m.oananews.org//node/20686
The shortlink copeid
Court issues arrest warrant for KTF chief in rebate probe
SEOUL, Sept. 22 (Yonhap) -- The head of KTF Co., South Korea's second-largest mobile carrier, was detained Monday after a court granted an arrest warrant to investigate allegations that he took kickbacks from suppliers and bribed politicians.
Prosecutors allege that KTF President Cho Young-ju took at least 2.5 billion won
(US$2.2 million) in rebates from mobile suppliers in return for buying their
handset equipment and routers. Some of the illegal money might have been given to
key figures of the former administration for business favors, they said.
"There are grounds to acknowledge the allegations. The issue is grave and there
is the possibility that he would destroy the evidence or attempt an escape,"
Judge Hong Seung-myeon, who issued the warrant at Seoul Central District Court,
said.
The latest investigation is the newest scandal in connection with some major
supporters of the Roh Moo-hyun administration. Park Yen-cha, chairman of Taekwang
Industry Co., a leading chemical and clothing company, was banned from travel
last week on allegations of irregularities involving tax evasion and Taekwang's
2006 acquisition of a chemical firm.
Prosecutors on Friday took the KTF chief into custody for interrogation, which
can last for 48 hours without a court warrant. The Seoul Central District Court
issued the warrant on Monday to keep him in detention during questioning.
Investigators said they have found evidence that Cho had opened bank accounts
under his relatives' names to receive the rebates. His wife and brother-in-law
are said to be involved.
The major opposition Democratic Party, whose members are reportedly involved in
the bribery allegations, denounced the probe as political revenge.
"It's such an unfortunate thing that whenever a new administration comes in, so
does the story of revenge. The prosecution is breaching its political
independence," Rep. Baek Won-woo said.
The timing of the probe is especially bad for KTF, which is struggling in the
country's saturated mobile carrier market. However, KTF is outperforming SK
Telecom in the emerging market of video-based third-generation (3G) telephony
service, and is set to merge with parent company KT Co. later this year.
Meanwhile, Cho tendered his resignation as the KTF president on Monday afternoon,
which was accepted in a meeting of the board of directors. The KTF board will
elect a new president at a time yet to be disclosed.
hkim@yna.co.kr
Prosecutors allege that KTF President Cho Young-ju took at least 2.5 billion won
(US$2.2 million) in rebates from mobile suppliers in return for buying their
handset equipment and routers. Some of the illegal money might have been given to
key figures of the former administration for business favors, they said.
"There are grounds to acknowledge the allegations. The issue is grave and there
is the possibility that he would destroy the evidence or attempt an escape,"
Judge Hong Seung-myeon, who issued the warrant at Seoul Central District Court,
said.
The latest investigation is the newest scandal in connection with some major
supporters of the Roh Moo-hyun administration. Park Yen-cha, chairman of Taekwang
Industry Co., a leading chemical and clothing company, was banned from travel
last week on allegations of irregularities involving tax evasion and Taekwang's
2006 acquisition of a chemical firm.
Prosecutors on Friday took the KTF chief into custody for interrogation, which
can last for 48 hours without a court warrant. The Seoul Central District Court
issued the warrant on Monday to keep him in detention during questioning.
Investigators said they have found evidence that Cho had opened bank accounts
under his relatives' names to receive the rebates. His wife and brother-in-law
are said to be involved.
The major opposition Democratic Party, whose members are reportedly involved in
the bribery allegations, denounced the probe as political revenge.
"It's such an unfortunate thing that whenever a new administration comes in, so
does the story of revenge. The prosecution is breaching its political
independence," Rep. Baek Won-woo said.
The timing of the probe is especially bad for KTF, which is struggling in the
country's saturated mobile carrier market. However, KTF is outperforming SK
Telecom in the emerging market of video-based third-generation (3G) telephony
service, and is set to merge with parent company KT Co. later this year.
Meanwhile, Cho tendered his resignation as the KTF president on Monday afternoon,
which was accepted in a meeting of the board of directors. The KTF board will
elect a new president at a time yet to be disclosed.
hkim@yna.co.kr
