Ex-KTF head gets 3 years in jail for taking kickbacks

SEOUL, Feb. 12 (Yonhap) -- A Seoul court on Thursday sentenced the former head of
KTF Co., the nation's second-largest mobile carrier, to three years in jail for
taking kickbacks from subcontractors.

Former KTF president Cho Young-joo was indicted for breach of trust late last
year on charges of pocketing 2.4 billion won (US$1.7 million) in rebates.
The Seoul Central District Court criticized Cho for grave moral laxness, citing
the large amount of money involved and abuse of his powerful position in business
relations.
The court also fined Cho 2.43 billion won.
Nam Joong-soo, former head of KT Corp., the parent company of KTF, was sentenced
to two years with a four-year suspension for taking 300 million won in kickbacks
from Cho and subcontractors between 2003 and 2005.
The court also fined Nam 270 million won and ordered him to do 200 hours of
community service.
Cho and Nam both resigned in the wake of the corruption probe.
The investigation has dealt a sharp blow to the two companies, the nation's key
players in the fast-changing telecom industry, as they scramble to cope with the
global economic crisis and subsequent sales drops.
The firms are currently under review by the Fair Trade Commission for their
merger bid.
odissy@yna.co.kr
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