ID :
23646
Fri, 10/10/2008 - 15:02
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Shortlink :
http://m.oananews.org//node/23646
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Former KTF president arrested, charged with taking kickbacks
SEOUL, Oct. 9 (Yonhap) -- The former head of South Korea's second-largest mobile carrier has been arrested and charged with taking kickbacks from a mobile equipment supplier, the state prosecutors office said Thursday.
Prosecutors claimed that Cho Young-ju received 2.4 billion won (US$1.7 million)
from the former head of a local telecommunications supplier who has already been
arrested.
Cho had tendered in his resignation to KTF Co. last month in the face of the
mounting probe with the board of directors accepting the decision.
"The CEO of the supplier gave the money and asked Cho to help the company win
deals for handset equipment and routers," a investigator said, adding that the
transfers of money took place from November 2006 to March of last year.
"Third person accounts were used with payment being divided into 44 different
transactions, while smaller sums were handed over to the Cho sister and two other
relatives," he said.
Of the money received, prosecutors initially suspected that some were turned over
to a close aide of former President Roh Moo-hyun but said the KTF head had used
it for personal expenses and investments with some being handed over to
relatives.
"While investigations are still underway to track where the money was used, there
is no evidence to link the kickbacks received with politicians at present," the
official said.
Related to alleged investments, prosecutors said 1 billion won was sent to the
United States.
Prosecutors, meanwhile, said that they plan to summon KT president Nam Joong-soo
for questioning in relation to possible bride taking.
They said that the executive may have received 100 million won from a supplier.
KT is the country's top integrated wired-wireless communications service provider.
Industry sources said that the arrest of Cho comes at a bad time for KTF, which
is struggling to stay afloat in the country's saturated mobile carrier market.
On Monday, the company confirmed that all top management submitted their
resignations en masse to Kwon Haeng-min, the companies newly appointed chief.
Prosecutors claimed that Cho Young-ju received 2.4 billion won (US$1.7 million)
from the former head of a local telecommunications supplier who has already been
arrested.
Cho had tendered in his resignation to KTF Co. last month in the face of the
mounting probe with the board of directors accepting the decision.
"The CEO of the supplier gave the money and asked Cho to help the company win
deals for handset equipment and routers," a investigator said, adding that the
transfers of money took place from November 2006 to March of last year.
"Third person accounts were used with payment being divided into 44 different
transactions, while smaller sums were handed over to the Cho sister and two other
relatives," he said.
Of the money received, prosecutors initially suspected that some were turned over
to a close aide of former President Roh Moo-hyun but said the KTF head had used
it for personal expenses and investments with some being handed over to
relatives.
"While investigations are still underway to track where the money was used, there
is no evidence to link the kickbacks received with politicians at present," the
official said.
Related to alleged investments, prosecutors said 1 billion won was sent to the
United States.
Prosecutors, meanwhile, said that they plan to summon KT president Nam Joong-soo
for questioning in relation to possible bride taking.
They said that the executive may have received 100 million won from a supplier.
KT is the country's top integrated wired-wireless communications service provider.
Industry sources said that the arrest of Cho comes at a bad time for KTF, which
is struggling to stay afloat in the country's saturated mobile carrier market.
On Monday, the company confirmed that all top management submitted their
resignations en masse to Kwon Haeng-min, the companies newly appointed chief.
