As the prosecution denied an arrest warrant for KT chairman Hwang Chang-gyu, KT could ease risks stemming from the absence of the CEO. The prosecution orchestrated an additional investigation, but it is unlikely that the police will apply for an arrest warrant again.
The Special Investigation Department of the Seoul Central District Prosecution rejected the arrest warrant for chairman Hwang on June 20, and led an additional police investigation. Earlier, the White Collar Crime Investigation Team of the National Police Agency applied for arrest warrants for former and incumbent KT executives including chairman Hwang on charges of a violation of the political fund act and embezzlement on June 18.
The police believe that chairman Hwang was involved in a process where KT's former and current executives transferred 441.9 million won (US$397,000) in cash raised by so-called "gift certificate fraud" to the accounts for political fund donations of 99 lawmakers in the 19th and 20th National Assembly between May 2014 and October last year.
However, chairman Hwang flatly denied the charges. "Chairman Hwang neither receivedany report about the fact nor remembered receiving any report about it. We judge it a deviant act of the community relations (CR) division," said a spokesperson for Hwang.
KT will continue to invest in new business and carry aggressive sales activities as it escaped from CEO risk. In particular, as the 5G frequency auction was wrapped up, KT is expected to put its utmost efforts into building networks and developing 5G services.
Chairman Hwang is scheduled to make a business trip to attend the Shanghai Mobile World Congress (MWC), the Asia’s biggest mobile technology showwhich will kick off on June 27. At the Shanghai MWC, chairman Hwang plans to hold a business meeting with the GSMA board.