The SEC’s FCPA settlement with South Korean telecom KT Corporation was relatively light, thanks in part to the latter’s cooperation. But the company’s missteps remain a cautionary tale for ethics and compliance. Here’s where KT Corporation ignored red flags and missed course-correcting opportunities.
The SEC on February 17 announced its first FCPA enforcement action in 2022: South Korean telecommunications company KT Corporation agreed to pay $6.3 million to settle corruption violations. As part of the settlement, it agreed to pay $3.5 million in civil penalties and $2.8 million in disgorgement.
The company is South Korea’s largest telecommunications company, and its American Depositary Shares are traded on the New York Stock Exchange. KT files periodic reports with the SEC.
Today we announced that Seoul-based KT Corporation will pay $6.3 million to resolve charges that it violated the Foreign Corrupt Practices Act by providing improper payments for the benefit of government officials in Korea and Vietnam.https://t.co/XdPZlqQkuE
— U.S. Securities and Exchange Commission (@SECGov) February 17, 2022
The charges handed down relate to violations of the FCPA’s books and records and internal accounting controls provisions…
