KT Corp., South Korea’s second-largest wireless carrier, accepted the resignation of Chief Executive Officer Lee Suk Chae after prosecutors raided his home and the company’s headquarters.
“Considering the ongoing investigations and the need to solve the piles of pending issues, the board has decided to accept his resignation offer,” KT said in an e-mailed statement today. The board will meet next week to begin the search for a successor to Lee, who offered to quit Nov. 3.
Prosecutors conducted the raids during the past month as they investigate allegations KT incurred losses on asset sales and bad investments. People’s Solidarity for Participatory Democracy, a South Korean civic group, filed a lawsuit against Lee in February, alleging he caused about 80 billion won ($75 million) of losses to the company by selling property too cheaply.
Lee also resigned as chairman of KT.
“Seeing executives and staff members suffering, I could no longer delay the resignation,” Lee said in an e-mail to employees Nov. 3. “I am also open to disclose all my salary and stock bonuses, if the company can be freed from the recent allegations and speculations.”
The board is seeking an early conclusion to the investigation so it can focus on its global business expansion, the company said in the statement.