State prosecutors sought an arrest warrant Thursday for a former head of local telecom giant KT Corp. for embezzlement and breach of trust.
Lee Suk-chae has been under a probe on charges of inflicting huge losses on KT, the country's top fixed-line operator and No. 2 mobile carrier, through poor investments and inking dubious business deals from 2009 till he resigned in November last year.
Lee also allegedly stashed around several billion won (several million U.S. dollars) worth of secret funds by inflating salary figures paid to the firm's executives.
Prosecutors said the former chairman allegedly ordered KT employees to invest in online education and subway network systems, causing the company about 10 billion won in losses.
Prosecutors also suspect that Lee sold 39 office buildings of the company at below market prices, also causing huge losses to KT and its investors.
The probe began when civic groups filed complaints against him in February and October last year, over the charges that are currently being investigated.
The court is expected to review the prosecution's request as early as Monday.
A close aide to former President Lee Myung-bak, Lee took the helm of the mobile carrier in 2009. He also served as a telecommunications minister in 1995. (Yonhap News)