South Korea’s KT Corp had dismissed allegations that it illegally sold two decommissioned satellites in 2010 and 2011 to Asia Broadcast Satellite.
In late October, Yoo Seung-hee of the Democratic Party was quoted saying that Mugunghwa-2 (Koreasat-2)…
South Korea’s KT Corp had dismissed allegations that it illegally sold two decommissioned satellites in 2010 and 2011 to Asia Broadcast Satellite.
In late October, Yoo Seung-hee of the Democratic Party was quoted saying that Mugunghwa-2 (Koreasat-2) and Mugunghwa-3 (Koreasat-3) had been sold below market prices and without seeking government approval, despite the birds being deemed strategic assets.
Confirming a KT official’s comments, a spokesperson told SatelliteFinance that although one of the satellites was sold for only W500m (US$471,000), the total transaction price, including after-sale technical support and other services, was actually around W20bn (US$18.8m).
The original investment costs for both spacecraft have been estimated at around W452bn (US$425.9m).
The spokesperson also said that, after 12 years, the satellites had reached the end of their lifetime and therefore KT assumed that these were no longer national assets requiring government approval.
However, the ministry of science, ICT, and future planning (MSIP) is currently looking into the matter.
Mugunghwa-2 and Mugunghwa-3 were replaced by Mugunghwa-5 and Mugunghwa-6, also known as Koreasat-5 and Koreasat-6. Mugunghwa-2 was then renamed ABS-1A operating at 75E and Mugunghwa-3 became ABS-7 at 116E.
In December last year, KT Corp spun off its satellite assets, which include Koreasat-5 and -6, into a new company called KT Sat. The unit comprises the parent group’s lease business of satellite repeaters and devices, as well as its satellite services assets.
The main purpose of the spinoff is to foster growth through streamlining its management, KT said at the time. However, well-placed sources suggested it might the precursor to a sale of the satellite assets.
Separately, KT Corp CEO Lee Suk Chae offered to resign in early October following corruption allegations made against him.
State prosecutors reportedly raided KT’s offices. Shortly after, Lee told employees in an email that he would resign as soon as the board appoints a successor, so as not to impact the company’s reputation. He however denies the allegations.
The probe was launched after a South Korean civic group, People’s Solidarity for Participatory Democracy, reportedly filed charges against the CEO, who is also chairman, in February and October this year. The group alleges that Lee has made poor investments decisions and sold some of KT’s properties too cheaply, therefore causing W87bn (US$81.8m) in losses to the operator.