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(LEAD) KT chief calls presidential office's management interventions 'senseless'

All News 15:41 March 28, 2017

(ATTN: CHANGES headline, lead; Minor edits)

SEOUL, March 28 (Yonhap) -- The chief of KT Corp., one of South Korea's largest telecom companies, said Tuesday that his company was pressured by the presidential office in 2015 to hire two executives recommended by then-President Park Geun-hye's acquaintances.

Chairman Hwang Chang-gyu told a local court that Park's office had also intervened in the position changes of one of the two executives later, and demanded KT create a ski team and consider a partnership with a company owned by Park's friend Choi Soon-sil. He described the interventions and pressures as "senseless" and "substandard."

Hwang made the remarks while attending a court trial of Choi and former senior presidential secretary An Chong-bum at the Seoul Central District Court to bear witness to an influence-peddling scandal surrounding the former president.

The CEO said he received a call from An seeking the employment of Lee Dong-soo, an associate of advertising director Cha Eun-taek, who is one of the key figures in the scandal that removed Park from office. Lee was later appointed to another position within KT following An's request.

"If it were not a request from the senior presidential secretary, there would be no reason to have met with Lee or to hire him," Hwang said.

The telecom service provider hired another figure close to Choi as a company executive. Hwang said it was also made under pressure from An.

"We could not help but feel burdened when a senior presidential aide said it was a demand of the president," Hwang said.

"I thought it was senseless for a senior presidential secretary to request a transfer of personnel in a private firm," he added.

Hwang also said he received proposals from Park in February last year that KT form a partnership with Choi's company and create a ski team. He said the company turned them down after concluding the ideas were substandard.

The same court is set to review whether to issue a warrant to formally arrest the former president over a string of corruption allegations, including bribery.

She has been named an accomplice in abusing her authority to extort money from local conglomerates for two dubious foundations allegedly controlled by Choi. The business groups have been claiming that they were in effect forced to make the contributions.

Hwang Chang-gyu, chief of KT Corp., arrives at the Seoul Central District Court on March 28, 2017, to testify at a trial of former President Park Geun-hye's longtime friend Choi Soon-sil and former presidential secretary An Chong-bum. (Yonhap)

Hwang Chang-gyu, chief of KT Corp., arrives at the Seoul Central District Court on March 28, 2017, to testify at a trial of former President Park Geun-hye's longtime friend Choi Soon-sil and former presidential secretary An Chong-bum. (Yonhap)

scaaet@yna.co.kr
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