Ex-KT chief arrested over hiring irregularities

By Kang Seung-woo

Lee Suk-chae, a former chairman of KT, was arrested Tuesday night over allegations that he was involved in the company's illegal hiring of conglomerate scions and relatives of high-profile figures during his tenure.

Former KT Chairman Lee Suk-chae arrives at the Seoul Southern District Court, Tuesday, for a court review on whether to issue an arrest warrant for him over his suspected involvement in the company's hiring scandal. The warrant was issued later in the day. / Yonhap

With Lee's arrest, the prosecution's probe into the hiring scandal is expected to get a boost, making it more likely that Rep. Kim Sung-tae of the main opposition Liberty Korea Party (LKP) and others who allegedly sought Lee's influence in the hiring process will be questioned.

The scandal came to light after suspicions arose that the former opposition floor leader's daughter received preferential treatment in the hiring process in 2012.

The Seoul Southern District Court issued an arrest warrant for the 73-year-old, saying he was likely to destroy evidence.

Lee, who served as KT chairman from 2009 to 2013, is suspected of obstruction of business for being involved in at least nine cases of hiring irregularities at KT in 2012.

According to prosecutors, Lee and former Executive President Seo Yu-yeol, now under arrest, instructed the firm's human resources department to select applicants of their “interest” in the hiring process in 2012.

Along with Kim's daughter, the nine included an acquaintance of former Korea Airports Corp. President Sung Si-chul and a child of Chung Young-tae, a former secretary-general of the Korea Commission for Corporate Partnership.

In addition, former Saenuri Party lawmakers Kim Hee-jung and Kim Young-sun are also suspected of asking Seo to provide preferential treatment to their acquaintances.

The prosecution said it has secured evidence of Lee's involvement in the hiring of Kim's daughter. So prosecutors are expected to question Lee about whether he was asked for undue favors by Kim and what benefits he received in return. Then they will summon Kim.

Kim's daughter joined KT in 2011 as a temporary worker, but got a regular full-time position the following year even though she failed some steps in the hiring process. She quit the job in February 2018.