KTF's management tender resignations amid probe

SEOUL, Oct. 8 (Yonhap) -- Top management officials at KTF Co., South Korea's No. 2 mobile carrier, recently tendered their resignations en masse amid a rebate scandal involving the company's former chief executive, according to company officials Wednesday.

The company has been mired in a kick-back scandal, with Cho Young-joo, former
president of KTF, having allegedly pocketed 2.4 billion won (US$1.7 million) in
rebates from one of the company's subcontractors, according to prosecutors. Cho
will be indicted on breach of trust charges.
"All executive-level officials have recently tendered their resignations en masse
to Kwon Haeng-min, the company's new president," one of the officials said,
requesting anonymity.
Kwon has yet to accept or reject the resignations, the official said.
The resignations follows a recent demand by the company's union for the
management to step down, punish officials that were involved in the rebate
scandal and establish an internal supervisory body.
The probe was a hard blow to KTF, which was ready to launch ambitious
new-generation projects to beat its larger rival, SK Telecom. KTF was prepared to
merge with KT ahead of the launch of Internet Protocol Television (IPTV) service,
channeled through broadband computer networks and seen as a potential cash cow to
offset declining fixed-line phone business.
odissy@yna.co.kr
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