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 | Investigations Dataset

Stanford Foreign Corrupt Practices Act Clearinghouse a Collaboration with Sullivan & Cromwell LLP

Investigations Dataset

 
Investigation into KT Corp's Activities in South Korea · KT Corporation

Information & Summary

Investigation into KT Corp's Activities in South Korea

Related FCPA Matter:   KT Corp's Involvement in South Korea and Vietnam between 2009 and 2018 Information

Information & Summary

Investigation Name:    Investigation into KT Corp's Activities in South Korea

Trend:    None

Type of investigation:    SEC

Other Agencies Investigating/Assisting with SEC Investigation:   

  • South Korean Law Enforcement Agency

Whistleblower:    Unknown

Summary

KT Corporation (KT Corp), incorporated and with principal offices in Korea, is a telecommunications services business. Its American Depositary Shares are traded on the New York Stock Exchange.

In its 20-F filed on April 28, 2017, KT Corp disclosed that in March 2017, the Constitutional Court of Korea found that many Korean corporations, including KT Corp, made donations to two non-profit foundations, Mir Foundation and K-Sports Foundation, at former President Park’s request. The Constitutional Court also found that, at the requests of an aide of former President Park, KT Corp hired (and later promoted) two individuals in the company's business unit to be in charge of marketing and advertisement campaigns. Subsequently, the same aide of former President Park also requested that the company award advertising contracts to Playground Communications Co., Ltd., an advertising agency over which a confidante of former President Park effectively owned 70% equity interest. Former President Park was subsequently indicted on charges of bribery and coercion in Korea. Subsequent disclosures by the company noted that various Korean law enforcement agencies initiated other investigations into possible corruption with Korean officials.

In its 20-F filed on April 29, 2020, KT Corp disclosed that it was cooperating with an SEC investigation related to the above-described matters and other related allegations regarding compliance with FCPA.

None of the filings indicated whether KT Corp ever initiated an internal investigation into any of the matters.

On February 17, 2022, the SEC issued a cease and desist order against KT Corp. The SEC noted KT Corp's cooperation and remediation.

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