Korean Telecom CEO Questioned in Corruption Probe

Prosecutors may seek the arrest of KT's Nam Joong-soo over allegations he took bribes in awarding contracts

KT CEO Nam Joong-soo has been questioned by federal prosecutors over bribery allegations.

The prosecutors will shortly be seeking an arrest warrant for the executive.

Nam was summoned for questioning last week, over allegations he received around 300 million won ($236,000) under-the-table for selecting personnel and subcontractors from KT affiliates.

Amongst the executives accused of paying the bribes are former KTF CEO Cho Young-chu and former KTF Networks CEO Roh Tae-boem.

KT meanwhile has reported its Q3 results. The company reported a 37% decline in profit on a year-on-year basis, taking in just 151.4 billion won ($127.3 million).

The company has blamed the result to a drop in revenues, and losses accrued due to the weaker performance of the won.

KT has benefited from reduced competition which has allowed it to spend less on advertising, although not nearly as much as its mobile operator subsidiary KTF.

The imminent introduction of number portability from fixed-line to VoIP is also expected to drive up competition once more. KT has already downgraded its profit forecast for 2008 as a result.