KT CEO to resign

The CEO of South Korea’s second-largest mobile operator has offered to resign, following a raid of the company’s headquarters and the CEO’s home.

Lee Suk-chae also held the position of chairman at KT. The company told Bloomberg in an emailed statement yesterday that the board would reveal Lee’s resignation date and replacement in due course.

Lee’s home was raided last month, as part of an investigation into KT’s incurred losses on asset selloffs and bad investments.

South Korean civic group, People’s Solidarity for Participatory Democracy, filed a lawsuit against Lee in February this year, accusing the CEO of causing $75 million worth of losses by selling property too cheaply.

The company has denied these allegations and Kim Dong-woo, a spokesman for KT, told Bloomberg that KT did not sell its assets at low prices.

In an email to employees yesterday, Lee said: “Seeing executives and staff members suffering, I could no longer delay the resignation. I am also open to disclose all my salary and stock bonuses, if the company can be freed from the recent allegations and speculations.”

Lee has overseen a successful year for KT, with plans for an LTE-Advanced network put in place in September and a deal with the Rwandan government for an LTE roll-out in the country earlier in June.

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