Police to investigate KT Freetel

On the 12th, the special investigation division of the National Police Agency started a probe into wrongdoings, which occurred at the time of establishment of KT Freetel. The police received a tip that a number of company directors had received bribes in stock as compensation for giving more shares to certain shareholders in the process of apportioning new shares.

Further, the police are also looking into allegations that present and former members of management had received huge rebates from construction companies when setting up base stations and communications networks. Police revealed investigations are being made into allegations that former high level directors of KT Freetel had received bribes in stock after apportioning 1.67 million shares to 6 different companies when new shares were distributed upon establishment of the company.

KT Freetel`s largest shareholder, Korea Telecom, had invested in 33.33% of the total shares, and the remaining shareholdings were jointly invested by 14,000 small and medium sized companies.