The prosecution is seeking an arrest warrant for Lee Seok-chae, former CEO of telecom giant KT Corp. on suspicions of embezzlement and negligence.

The Seoul Central District Prosecutors’ Office is reportedly planning to indict Lee along with other former and current executives of the telecom provider within the month.

Lee is accused of inflicting damages of 10 billion won ($9.4 million) on the telecom behemoth in the process of launching new businesses and selling off real estate held by the company. In the real estate transactions, Lee allegedly sold KT property for 25 percent below market value, while pushing ahead with new businesses despite the projection of large losses.

The investigators are also reported to have secured circumstantial evidence that Lee meddled in KT’s acquisition of two companies linked to former Foreign Minister Yoo Chong-ha, his distant relative.

The 68-year old bureaucrat-turned-businessman is also accused of amassing tens of billions of won in slush funds, part of which may have been used to provide favors to a former high-level bureaucrat.

By Choi He-suk (cheesuk@heraldcorp.com)