KT boss to resign amid graft probe

Dylan Bushell-Embling
04 Nov 2013
00:00

KT chairman Lee Suk-chae has announced an intention to step down from the role, in light of an ongoing investigation into corruption allegations leveled against him.

Korea's Yonhap Newsreported the news on Sunday, citing a company-wide email the publication has seen. Lee said he has made the decision because he does not want to see his employees suffer during the investigation.

According to the email, Lee plans to stay in the role into a successor is chosen and to help with the transition period before departing.

The resignation notice follows a raid on KT offices by prosecutors last week – the second in 10 days – connected to the probe.

The Seoul District Prosecutors' Office launched the investigation after a civic group filed breach of trust charges against Lee in February.

He has been accused of operating a slush fund and making bad investment decisions that has cost KT hundreds of billions of won (hundreds of millions of dollars) in losses.

Other allegations include awarding business to unauthorized subcontractors and selling office buildings at below market prices. Lee has denied all the charges, calling them groundless.

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